Should you take a contingent offer in a changing market? Well it depends and that’s what we’re discussing today!
Should You Consider a Contingent Offer
Hey it’s your favorite bearded realtor, Eren Millam with Premiere Property Group LLC. I’ve sold hundreds of homes here in Lewis County and the surrounding areas over the last decade and believe me, I’ve seen a ton of contingent offers – advised my clients to take some, reject others. So let’s get into it!
Contingent Offer Differences
First, there are two types of contingencies in Washington State. The first is a 22B and in lay man’s terms, it’s an offer for your home based on the buyer selling their home that does not currently have an offer on it. The second is a 22Q which is the same but the buyer already has an offer on their home.
Which Type You Should Accept
So whether or not you choose to accept a contingency depends upon the type of contingency you’re working with. But, we need to dive a little deeper as well. In most cases a 22Q is considered a strong offer worthy of acceptance. However, how far along in the deal are they? Have they past inspection, are they past appraisal, do they have a funky closing date, or any other weird terms that would throw up a red flag.
On the flip side, in most cases a 22B is NOT considered a strong offer. But it could be! Take a look at things like, is the home already on the market, is it getting a lot of action, do they already have an offer that they’re waiting to accept? If so, what are the terms of that offer? Another benefit of the 22B is that it gives you the seller, lots of power to force buyers hand. For example, a home that is in contingent status with a 22B can still accept other offers. The process for this puts buyer in a position to decide between waiving ALL their contingencies or letting the other buyer take first position. Granted, this is a risk for the seller because most of the time, contingent properties are NOT shown by other agents for one reason or another.
Is A Contingent Offer Good or Bad
So there you go. You still have no idea whether a contingent offer is a good or bad offer. That’s because there are so many variables to look out for. Your agent should be able to advise you one way or another and give you their exact reasons for doing so. The worst thing that can happen is you’re stuck in a contingent offer with no activity while the market is shifting or dropping. It’s a big deal and a major decision that should not be made lightly.
Again, I’m Eren Millam with Premiere Property Group, and remember, Extraordinary Service delivers Extraordinary Results!
If you’re thinking of buying or selling your home in the west Lewis County area, contact me today! I’d love to hear from you! Eren Millam – Managing Broker Premiere Property Group, LLC WA License No. 26933
Chehalis, WA 98532 | Centralia, WA 98531 | Adna, WA | Napavine, WA | Onalaska, WA 98570 | Rochester, WA 98579 | Vader, WA 98593 | Winlock, WA 98596 | Boistfort, WA
Call/Text: (360) 219-3616 | Email: Eren@LewisCountyHomes.com
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